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According to a new report, the U.S. Department of Commerce has issued a letter to Taiwan Semiconductor Manufacturing Co. (TSMC), imposing restrictions on exporting advanced chips like the 7-nanometer to Chinese customers.?
These chips are often used in developing AI applications that could threaten US security. This action follows U.S. lawmakers’ growing concerns about insufficient export controls on China.
US AI Dominance War Against China Intensifies
According to an exclusive report by Reuters, these restrictions target components essential for AI accelerators and graphics processing units (GPUs) and is set to take effect on November 11.
JUST IN: The U.S. ordered Taiwan Semiconductor Manufacturing, $TSM,
to halt shipments of advanced chips to Chinese customers that are often used in artificial intelligence applications starting Monday, per Reuters— unusual_whales (@unusual_whales) November 10, 2024
The report details that TSMC has already informed affected clients in China about the new restrictions, signaling the potential for major disruptions in China’s AI and semiconductor industries.
The clampdown comes after a TSMC-manufactured chip was reportedly found in Huawei’s “Ascend 910B AI processor,” considered one of the most advanced chips in China. Huawei is already on the U.S. trade blacklist, meaning licenses for goods or technology that could boost its AI capabilities are unlikely to be approved.
This incident has fueled U.S. concerns that Huawei may be circumventing existing trade controls, potentially violating export regulations designed to limit China’s AI advancements.
Notably, Huawei has framed the U.S. restrictions as a catalyst for its push toward self-reliance, particularly in AI, computing power, and semiconductors. The company recently introduced the Kirin 9000s chip in its Mate 60 Pro, marking a significant step in its quest for technological independence.
When the United States imposed sanctions on Huawei in 2019, Huawei led the world only in 4G/5G and mobile phone business, but Huawei's phones used Qualcomm's chips, Android operating system and many American components, and Huawei's 4G/5G devices also have many components from… pic.twitter.com/46r9tnkdsf
— DaiWW (@BeijingDai) June 15, 2024
The U.S. Department of Commerce’s latest measure extends beyond Huawei. Similar restrictions have been implemented on companies like Nvidia and AMD, limiting their export of AI-related chips to China and restricting semiconductor manufacturing equipment to Chinese firms.
The latest restriction pinpoints the escalating technology standoff between the two global superpowers as the U.S. aims to control China’s advancement in AI. With Donald Trump winning the just concluded US election, observers believe he will prioritize the US AI sector, thus projecting more sanctions for competitors like China.
